Inflation remains stubbornly above target

INFLATION came in above target for the 38th month when official data for January showed the consumer price index (CPI) at 2.7%.

The CPI rate was unchanged for the fourth month in a row.

The Office for National Statistics said there was upward price pressure on alcohol and tobacco products and air fares, balanced out by lower prices on clothing and other goods and services.

Another missed inflation target is unlikely to spur the Bank of England into tighter monetary policy – higher rates or rolled back quantitative easing (QE), analysts believe.

RPI inflation was 3.3%, up from 3.1% in December.